article thumbnail

The Role of Financial Projections in Business Valuation

Equilest

Market-Based Valuation Market-based valuation methods determine the value of a business by comparing it to similar companies in the market. The Comparable Company Analysis (CCA) compares key financial ratios and multiples, such as price-to-earnings (P/E) ratio or enterprise value-to-sales (EV/S) ratio, of similar publicly traded companies.

article thumbnail

M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Analysts use financial metrics and multiples such as Price to Earnings (P/E), Price to Book (P/B), Enterprise Value to Sales (EV/Sales), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios derived from trading data of similar public companies or deal pricing data of similar M&A transactions.